Billionaire Elon Musk paid $44 billion to purchase Twitter on October 27. One of the factors driving him to work swiftly to discover new revenue streams to revitalize the platform was this enormous cash.
On November 4, the billionaire started a radical cost-cutting initiative by eliminating 3,700 positions, or half of Twitter’s workforce, in a single day. Additionally, he recently introduced a new Twitter Blue membership model by including the account authentication badge and raising the monthly fee to $7.99.
Musk is aware that advertising will generate the majority of the company’s income. He wants a larger portion of the lucrative online advertising business, which has been split for years among TikTok, Meta Platforms (META), Alphabet (GOOGL), and its subsidiary YouTube. Musk is pursuing a two-pronged plan to do this.
If twitter could handle the full length feature videos that I produce and can offer a similar monetization system like YouTube does, I would consider uploading my full videos here too for sure. https://t.co/JsYw9DI9oO
— Everyday Astronaut (@Erdayastronaut) November 5, 2022
The first stage is to keep the present advertisers who worry that Twitter’s absolutist protection of free speech will attract extremists, such as followers of conspiracy theories, false information, and rhetoric that is racial and anti-Semitic, back to the platform.
By assuring them that Twitter won’t turn into a “hellscape,” Musk has attempted to use both the carrot and the stick. Additionally, he threatened to shame them in front of his 114.3 million followers if they stopped advertising their goods and services on the network.
The second prong of the approach is to overtake the market share held by the major players in the lucrative advertising business, including YouTube, Instagram, Facebook, Snapchat, and TikTok.
In order to accomplish this, the serial entrepreneur wants to entirely redesign Twitter in order to entice creators to the network. He wants to lure creators away from rival platforms and persuade them that Twitter is the place to be right now.
We can do 42 min chunks at 1080 resolution now for new Blue, so you could break up a longer video. The 42 min limit should be fixed next month.
How does YouTube monetization work & what could Twitter do better?
— Elon Musk (@elonmusk) November 5, 2022
Musk is aware that while his name and standing will make creators and influencers pay attention to him, it will take more to convince them to either develop original content for the platform or abandon the competition. He desires to deploy the heavy artillery as a result.
He pointed his camera at YouTube. The content creators would receive a lot bigger share than what the video platform now pays them thanks to Twitter’s revenue sharing program, he just promised. Advertisers are wooing creators and influencers because they want to promote their products on trending content so that it is seen by as many people as possible.
The statement was made as part of a Twitter exchange between Musk and creators, to whom he explained the improvements Twitter will make to enable them to more effectively showcase their talents.
One producer wrote to the billionaire saying, “I would definitely consider publishing my complete videos here too for sure, if twitter could handle the full length feature videos that I produce and can offer a comparable payment scheme like YouTube does.
Musk Will Pay Creators Better Than YouTube
“We can now divide up a larger film into 42 minute parts at 1080 HD for new Blue. Next month, the 42-minute limit ought to be fixed, said Musk.
Then he enquired as to how YouTube monetization operates and what Twitter may do to improve it.
Another creator retorted, “With Munro Live @live munro we get roughly 7$ per 1,000 views. “For 3.3 million views of Sandy’s chat with you, we made roughly $22,000. It would be ideal if we could receive a tiny portion of Twitter Blue revenue and 40% of the advertising that appear in long form content.
“Interesting,” said Musk.
Another social media influencer stated, “YouTube offers creators 55% of ad money, FWIW.”
And at that point, Musk made a statement that will undoubtedly have a big impact in Silicon Valley, where platforms like YouTube, Instagram, Facebook, and Snapchat are already doing everything they can to slow the growth of TikTok.
Because of its growing attraction to Gen Zers, the short-form video platform has become a top choice for advertisers trying to grow their clientele and engage the next generation of buyers.
Or, to put it another way, Twitter will donate more than 55% of the advertising income produced by their content. Depending on the platforms and the length of the video, different revenue-sharing methods apply.
The producers receive 55% of the advertising money from longer YouTube videos, and YouTube receives 45%. With only 45% of the overall revenue going to creators, the short version modifies this.